Case Law Details
Vinnu Goel Vs Deputy Commissioner Stamp Registration & Ors. (Delhi High Court)
Introduction: The Delhi High Court recently addressed a significant issue concerning the interplay between arbitration proceedings and the examination of stamp duty on legal documents. In the case of Vinnu Goel Vs Deputy Commissioner Stamp Registration & Ors., the petitioner challenged the adequacy of stamp duty assessed by the authorities on a Memorandum of Understanding (MoU). This case highlights the judiciary’s role in ensuring compliance with stamp duty regulations, even when disputes are referred to arbitration, thereby safeguarding the state’s revenue interests.
Detailed Analysis: The petitioner, engaged in a legal dispute, argued that the MoU dated 12.11.2014 was incorrectly stamped by the respondent on 18.04.2016. The dispute was primarily about whether the document in question was sufficiently stamped as per the Indian Stamp Act, 1899. According to the petitioner, the MoU, which was the basis of the arbitration agreement, should have been stamped on an ad valorem basis, considering it sought to create rights in properties amounting to conveyance.
The High Court meticulously examined relevant provisions of the Indian Stamp Act, including Sections 31, 33, and 56, which outline the procedures for adjudication and impounding of instruments not duly stamped. The court underscored that every instrument brought before a person authorized to receive evidence must be examined to ascertain if it is duly stamped and, if found not duly stamped, must be impounded.
The court also deliberated on the recent judgment by the Apex Court, which clarified that non-stamped or inadequately stamped agreements are not void ab initio but are inadmissible in evidence until properly stamped. This principle ensures that stamp duty violations are correctable, thus not invalidating the agreements outright but emphasizing the need for compliance to enable their enforceability.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
